Home – New Forums Money matters Paying teenagers Reply To: Paying teenagers

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JamesMillar, post: 214358, member: 5318 wrote:
If a minor (person under 18) derives employment income then they are generally tax at normal rates on that employment income. However if a minor receives more passive unearned income (trust distributions etc) then those amounts will generally be taxed at a higher rate to discourage income splitting.

So yes the maths probably stack up but keep in mind that the law would expect it to be a genuine employment arrangement.

Hi James, yes they were my concerns as well, and had already decided not to go down that path, if she suggested it I assumed it was dodgy.

As usual thanks for your help

Interesting I also got a reply from my accountant, apparently they have internet overseas as well, bit sad that he is answering my emails on holidays though, dedication I guess. And he mentioned the same things as well as the possibility of super ($450 income per month), register with work cover, although maybe not have to pay a fee. plus we can’t suddenly pay say 3K this months without upsetting the apple cart, and if we back paid it over the year, it would look dodgy as we would have to adjust our BAS’s.
Oh plus of course if we don’t actually hand over the cash (which was the bit I edited out of the original email), in a couple of years time D could come and say, well where is it.